Opportunity day 4Q19 1 Agenda Business Overview Business - - PowerPoint PPT Presentation

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Opportunity day 4Q19

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Agenda

Operating Results for 4Q19 Business Overview Business Highlights and Direction

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FSMART Overview: New High Net Profit with Strong Balance Sheet

Key Information

• Registered Capital

Bt400mn (800 Million Shares)

• Market Capitalization

Bt5,568mn or Bt6.90 per Share (As of March 3, 2020)

• PE Ratio

9.13 (As of March 3, 2020)

• CGR 2019
• Dividend

Policy: Not Less than 40% Net Profit

Shareholding Structure (As of Aug 22, 2019)

• Major Shareholders
• Free Float

FORTH 49.42% Amatanon Family 6.67% FSMART (Treasury Stock) 2.50% Funds (Foreign/Local) 1.74% 39.11%

• Dividend Yield Based on the Closing Price as of the Performance Period of Dividend Declaration

Year

2016 2017 2018 2019

Revenue (Bt mn) 2,245 3,105 3,339 3,147 Net Profit (Bt mn) 420 543 583 584 EPS 0.53 0.68 0.74 0.75 IBD/E 0.77 1.13 0.99 0.70 0.42 0.55 0.62 0.66 2.2% 3.1% 10.6% 10.3%

2016 2017 2018 2019 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 2016 2017 2018 2019 Dividend per Share Dividend Yield

Dividend & Yield

Customers Boonterm Kiosks Service Operators

Use services at Boonterm Kiosks Provide services to Boonterm Kiosks A Platform to Connect Customers and Service Operators with Total of 130,481 Boonterm Kiosks owned by FSMART

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FSMART Is a Platform Delivering Convenience

• 21 Million Active Subscribers
• 1.9 Million Transactions per Day

As of Dec 2019

Pay commission to FSMART Pay service charge to FSMART

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Comprehensive Range of Services at the Kiosk

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8 15 10 6 6 13 1 1 20 4

Mobile Top Up 64%

Money Tranfer 21% E-Wallet 8% Bill Payment 4% VAS 2% Others 1%

As of Dec 2019

• 6 New Services SCB, BAAC, Air-Pay, BMTA, AXA, Myanmar Hit Song

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21,808

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22,561

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18,367

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16,289

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13,293

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38,163 Total 130,481 Kiosks As of Dec 2019

• Over 85% of Boonterm kiosks is outside Bangkok Metropolitan

The Undisputed Leader in Coverage and Number of Service Points

Note: Number of Service Points as of 2019 – ATM & Bank’s Electronic Machine (57,554), 7-11(10,988), Banks Branches (6,729), and Thailand Post (1,278)

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Mom and Pop Shop 71,243 Residence 30,794

Convenience Store

13,570 Office Building 3,784 Service Business Area 3,001 Educational Institution 1,827 Petrol Station 1,566 Temple 1,304 Market 1,305 Department Store 1,044

Government Office 652

Transportation Station

391

Deep Penetration to the Grassroots Level

As of Dec 2019

• Over 75% of Boonterm kiosks Locates at Mom and Pop Shop and Residence

Sustainable and Recurring Business Model

FSMART AGENT

• Listed Company
• Provide superior hardware

and IT services

• 170 Agents, 69 Partners
• Identify best locations
• Manage daily groundwork operation

Revenue Sharing

Commission from Operators Service Charge from Customers

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Over 51 Million “Cash Society” People to Serve

• Thailand Population: 17 Million Cashless Society People vs 51 Million Cash Society People
• 5% p.a. Growth Rate in Both Revenue and Saving Account Numbers

Main Customers – 21 mn People

• 9 mn People: Rev/mth < Bt9,400 with Saving < Bt3,200
• 12 mn People: Rev/mth < Bt6,900 with Saving < Bt500

Secondary Customers – 30 mn People

• Rev/mth < Bt3,700 with No Saving

Cashless Society – 17 mn People (Higher Revenue and Saving)

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Agenda

Operating Results for 4Q19 Business Overview Business Highlights and Direction

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Undisputed Number 1 Automated Service Platform Operator in Thailand

Total of

130,481

Boonterm Kiosks

3,497

Vending Machines Total Transaction Value in FY2019

40,496

Million Baht Average

1.9 Million

Transactions per Day (58 Baht/Transaction) Average

70,307 Cans

per Day

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Million Active Subscribers

170

Agents and

69

Partners

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Categories

84

Services with

3 Major Mobile

Operators and 6 Banks

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2019 New Services: Adding 3 Banks, Personal Loan, and Fresh Coffee Machine

Banking Agents Personal Loan Fresh Coffee Machine

Now, Banking Agents for 6 Banks

New Services

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FSMART’s New Vision & Mission

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The New S-Curve: Strengthen Core Business while Leverage Leading Position to New Opportunities

• 1. Online Top-up & Payment

Business

• 2. Banking Agent & Lending

Business

• 3. Distribution Platform

Business

 Adding banks to the ecosystem  e-KYC  Deposit and Withdrawal  Lending (Bt500-800mn Loan in 2020)  Adding Services  SIM Card Distributors  Location Management

 Vending Business

(7,000 Locations in 2020)  Petrol Kiosk (2,000 Locations in 2020)  EV Charger Station  Product Distribution

124,653 130,053 130,481 132,000 134,000 1,582 1,957 3,497 7,000 10,000

• No. Of Kiosks
• No. Of Vending

Machine

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3,105 3,339 3,147 3,304 3,469 36,175 41,980 40,496 42,500 44,500 5,000 15,000 25,000 35,000 45,000 1,000 1,500 2,000 2,500 3,000 3,500 4,000 2017 2018 2019 2020F 2021F

Revenue Top up

2020 Revenue Expected to grow 4-6% by Adding Kiosk and Revenue from Banking Agent and Lending Business

• No. of Kiosks

and Vending Machine Top up and Revenue

4,000-6,000 Units Increase

• Investment Bt100-200mn
• All kiosks and machines

can provide top-up & payment service 4-6% Growth from

• Banking Agent (6+ Banks)
• Lending Business (Bt500-

800 mn Loan Amount)

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Online Top-up & Payment Business

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• 2,000

4,000 6,000 8,000 10,000 12,000 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 2014 2015 2016 2017 2018 2019 2020 17

24,859

Kiosks

65,867

Kiosks

92,082

Kiosks

124,563

Kiosks

130,053

Kiosks

130,481

Kiosks

132,000

Kiosks(Target)

2014 2015 2016 2017 2018 2019 2020(F)

Bt mn

Bt9,786 mn in 4Q19

• Avg. Bt106.37 mn per day

Quarterly Total Transaction Value

Actual Forecast Actual in 4Q19 ARPU > 6M Operating Kiosks

27% 34% 39%

2018

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Value Share and Leading Position Maintained despite Growing in Competitions

Kiosk

Prepaid Market Value Value Share by Channels Total Kiosk Numbers

Bt128,194mn

Others

Source: Mobile Operators Public Information (MD&A), Industry Information, and FSMART Analysis

54% 46%

2018

242,093 Kiosks

Mobile Banking and App Boonterm Others

Number of Kiosk Share

26% 26% 48%

2019

Kiosk

Bt124,260mn

Others Mobile Banking and App

53% 47%

2019

246,374 Kiosks

Boonterm Others

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New Services

Myanmar Hit Song AirPay e-Wallet BMTA Personal Insurance

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Mobile Top-up Campaign to Promote Payment at Boonterm Kiosk

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New Service – SIM Card Distributor

SIM Card Distributor for AIS Total 961 Kiosks with SIM Card Distributing System and e-KYC Service at the end of Dec 2019 (Target of1,000 kiosks) “Lucky Number” SIM Card to Start in 1Q20

516 5,063 12,488 19,042 28,615 2017 2018 2019 2020F 2021F

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Depreciation Saving Expected Going onward

24.4

Accumulated Fully Depreciated Kiosks Number Depreciation Costs Saving (Bt mn)

27.3 28.1

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Banking Agent & Lending Business

24 Actual Transfer Value in 4Q19 Forecast Transfer Value Transactions

Money Transfer Transaction Number Expect to Grow Significantly in 2020

Bt mn 40,045 68,332 166,810 318,226 439,968 602,638 723,983 846,320 821,548 891,968 925,191 975,436 954,173 983,456 1,159,351 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 1,000 2,000 3,000 4,000 5,000

2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20

Actual Transfer Value Monthly Transaction Number at the End of Quarter

(Total 6 Banks) (KTB&KBANK&BAY)

1,159,351 Transactions per Month in 4Q19

25.3% YoY 17.9% QoQ 2019: 9.2% YoY 6.8% QoQ

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Add at Least 1 More Bank to Maintain Leading Banking Agent Position and Add More Services to Increase Transaction Numbers by 40-45%

40-45%

1,159,351

2019 2020F

Transaction Number

2019 2020

BANK

2016 - 2018

• To add at least 1 more bank
• To add withdrawal and e-KYC

service to become full-service banking agent and increase number of transactions

11.9 mn

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Lending Business to Grow to Bt500-800mn Credit Line in 2020

89 2019 2020F

Loan Amount (Bt mn) 78,000+ Low Risk Accounts due to Business Relationship with FSMART Personal Loan Target Customers (Phase 1)

• Interest Rate 8-28%
• NPL < 3%

500-800

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Distribution Platform Business

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Forth Vending (FVD) Shareholders and Business Model

Location

Quarterly Beverage Sales Growing Continuously

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3,497 Vending Machine 1,908 Vending Machine 1,582 Vending Machine

2018 2019 2020(F) 2017

0.5 0.8 1.1 1.1 1.2 1.3 1.4 1.6 1.7 1.9 2.0 2.2 0.0 1.0 2.0 3.0 .0 20.0 40.0 60.0 80.0 100.0 120.0 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20

3,497 Vending Machine Beverage Sales Bt82.12mn per Quarter

* Average Price 13-15 Baht/Can

Beverage Sales (Bt mn) Actual Beverage Sales (Bt mn) in 4Q19 Forecast Beverage Sales (Bt mn)

• No. of Beverage Sales (Cans)

Bt mn

7,000 Vending Machine (Target) 9.57% QoQ 43.83% YoY

Million Cans per Month

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Further Leverage the Leading Position and Network to New Opportunities

Vending Machines Network Management

• Target to expand 3,000-4,000 vending

machines in 2020, from current 3,500 machines

• All machines can provide top-up &

payment services

• Prime locations (e.g. hospital, office

buildings)

Product Distribution to Mom-and-pop Shops

• Leverage the agents network to

distribute product(s) to mom-and- pop shops

Petrol Kiosks

• Target to expand 2,000 kiosks in

2020

• Monthly petrol sales of 2 mn liters
• All machines can provide top-up &

payment services

124,653 130,053 130,481 132,000 134,000 1,582 1,957 3,497 7,000 10,000

• No. Of Kiosks
• No. Of Vending

Machine

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3,105 3,339 3,147 3,304 3,469 36,175 41,980 40,496 42,500 44,500 5,000 15,000 25,000 35,000 45,000 1,000 1,500 2,000 2,500 3,000 3,500 4,000 2017 2018 2019 2020F 2021F Revenue Top up

Sustainable Growth from New Businesses Contribution

Contribution 2019 2020F 2021F Top-up and Payment 80% 70% 60% Banking Agent and Lending 15% 25% 30% Distribution Platform 5% 5% 10%

• No. of Kiosks

Top up and Revenue

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Agenda Operating Results for 4Q19 Business Overview Business Highlights and Direction

7,324 6,656 6,261 171 212 197 475 630 730 398 401 373 1,931 1,890 2,070 143 154 155

4Q18 3Q19 4Q19

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30,158 30,674 27,129 833 611 1,760 2,445 781 1,470 1,595 4,073 7,111 7,834 551 966 660

2017 2018 2019

Mobile Top up VAS E-Wallet Bill payment Money Transfer Others

Total transaction Value 10,430 9,943 9,786 Bt mn

Transaction Value by Service

Remark : Usage Amount = Service Amount + Service Charge

70.1% 67.0% 64.0% 1.6% 2.1% 2.0% 3.8% 4.0% 3.8% 4.6% 6.3% 7.5% 18.5% 19.0% 21.1% 1.4% 1.6% 1.6%

4Q18 3Q19 4Q19

Mobile Top up VAS E-Wallet

36,174 41,981 40,496

Total Transaction Value decreased mainly from data package top-up (cheaper than voice package top-up), marketing campaign to promote SIM card sales, and post-paid and e- wallet usage, increase in number of competitors’ kiosks, and economic slowdown. However, the Company expected new business revenue to increase more than a decrease of top- up revenue in 2020

6.2% YoY 1.6% QoQ

15,8%

3.5%

3,105 3,339 3,147 820 780 764 2017 2018 2019 4Q18 3Q19 4Q19

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Financial Performance

Revenue (Bt mn)

2.1% QoQ 6.8% YoY 77.5% 74.5% 71.1% 2.2% 2.7% 2.4% 6.0% 8.4% 9.9%

1.1% 1.1% 1.1% 10.4% 11.3% 12.6% 2.8% 2.0% 2.9% 4Q18 3Q19 4Q19

Mobile Top up VAS E-Wallet Bill payment Money Transfer Others

% Revenue by Services

Revenue decreased mainly from:

• Data package top-up (cheaper than voice package top-up),
• Marketing campaign to promote SIM card sales, and post-paid and e-wallet usage,
• Increase in number of competitors’ Kiosks, and
• Economic slowdown.

However, the Company expected new business revenue to increase more than a decrease of top-up revenue in 2020.

543 583 584 142 144 146 2017 2018 2019 4Q18 3Q19 4Q19 17.5% 17.5% 18.6% 17.4% 18.4% 19.1%

Financial Performance

Net Profit

Net Profit (Bt mn) & Net Profit Margin

2.8% YoY 1.4% QoQ

Net Profit Margin Gross Profit

Gross Profit (Bt mn) & Gross Profit Margin

4.4% QoQ 1.2% YoY

Gross Profit Margin

Gross Profit & Gross Profit Margin decreased due to:

• Declining in core revenue,

However, the Company expected profits to increase in 2020 due to:

• New business profit to increase more than a decrease of top-up profit, and

Saving from fully-depreciated kiosk. Net Profit & Net Profit Margin increased due to:

• Cost saving measurement, and
• Lower financial costs.

The Company expected further cost savings in 2020.

732 708 656 167 158 165 2017 2018 2019 4Q18 3Q19 4Q19 23.6% 21.2% 20.8% 20.3% 20.2% 21.6%

1,334 1,251 1,336 1,251 1,190 1,336 1,506 1,245 941 1,245 1,036 941 1,420 1,420 1,243 1,420 1,286 1,243 2017 2018 2019 4Q18 3Q19 4Q19

Asset (Bt mn)

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Financial Performance

Liabilities and Equity (Bt mn)

Other liabilities Equity IBD 4,260 3,916 3,520 3,916 3,512 3,520 2017 2018 2019 4Q18 3Q19 4Q19

Asset decreased due to:

• Maintaining Number of Kiosks, and
• Utilizing the Fully-depreciated Kiosks.

Liabilities decreased due to:

• Decreasing in Both Short-term and Long-term Loans.

0,2% QoQ

10.1% YoY Equity increases due to:

• Net Operating Profits.

43.1% 45.1% 45.2% 45.1% 47.6% 45.2% 14.6% 14.3% 15.7% 14.3% 15.6% 15.7% 2017 2018 2019 4Q18 3Q19 4Q19 ROE ROA

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2.19 2.12 1.64 2.12 1.95 1.64 1.13 0.99 0.7 0.99 0.87 0.7 2017 2018 2019 4Q18 3Q19 4Q19 D/E IBD/E

Financial Performance

ROE / ROA Debt to Equity & Interest Bearing Debt to Equity

ROA increased due to:

• The Increase in Asset Utilization Efficiency.

ROE increased due to:

• Ability to Maintain Profitability, and
• Decrease in Shareholders' Equity from Treasury Stocks.

Debt to Equity and Interest Bearing Debt to Equity decreased due to:

• Decrease in Long-term Loan and Increase in Shareholders’ Equity.

Statements included or incorporated in these materials that use the words "believe", "anticipate", "estimate", "target", or "hope", or that otherwise relate to objectives, strategies, plans, intentions, beliefs or expectations or that have been constructed as statements as to future performance or events, are "forward-looking statements" within the meaning are not guarantees of future performance and involve risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated at the time the forward-looking statements are made. FSMART undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. FSMART makes no representation whatsoever about the

• pinion or statements of any analyst or other third party. FSMART does not monitor or control the content of

third party opinions or statements and does not endorse or accept any responsibility for the content or the use

• f any such opinion or statement.

FSMART Investor Relations

www.boonterm.com E-mail : investor@forthsmart.co.th

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Disclaimers